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Intel to Enter Chip Manufacturing Business, Competing with Nvidia
Intel appoints Eric Demmers as chief architect to lead new GPU production targeting AI and data center markets amid rising chip demand, Intel CEO said.
- At the Cisco AI Summit, Lip-Bu Tan announced Intel will start producing GPUs, marking a significant expansion into new chip types.
- Soaring demand for GPUs, which power large language models, has surged as companies build AI infrastructure, while last year Intel drew big investments and earlier this month faced production snags.
- Intel also bolstered engineering ranks, hiring Eric Demmers in January, who worked over 13 years at Qualcomm, while Tan said it took `some persuasion` to recruit the new chief architect.
- The move alters Intel's competitive posture because investors have sought clarity on an anchor customer for the foundry business even as the stock rallied last year, while Intel has fallen behind major semiconductor peers amid the AI data-center buildout.
- The project remains early-stage and Intel plans to develop GPU strategy around customer demand, while observers noted the timing ahead of TechCrunch's June 23, 2026 event.
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According to Intel CEO Lip-Bu Tan, the GPU project is being overseen by Kevork Kechichian, Intel's head of data center chips.
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Intel Commits To Future GPU Releases With Latest Hire, But What About Gaming?
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Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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